Erdogan Drops Call for Envoy Expulsions, Avoids Escalation
Turkey Skirts Escalation as Erdogan Softens on Envoy Expulsions
(Bloomberg) -- President Recep Tayyip Erdogan dropped his demand for 10 Western ambassadors to be expelled from Turkey, deescalating a diplomatic row that had shaken the lira and was set to bring Ankara’s ties with key partners to the brink of collapse.
Erdogan said the envoys, including the U.S. ambassador, had issued a statement to undo the “slander” caused by their earlier joint demand for Turkey to release a businessman and government critic who’s been in jail for four years. “Our intention is never to cause a crisis,” he said in televised comments after a cabinet meeting in capital on Monday. “It’s about protecting our country’s sovereign rights.”
Before Erdogan stepped back from the brink, the U.S. embassy said in a statement on Twitter that it complies with international conventions barring envoys from interfering in the domestic affairs of host countries. Other embassies, including those of Canada and the Netherlands, posted similar messages. Turkish state media said Erdogan viewed the comments “positively.”
The latest disagreement between Turkey and once key allies in Europe and North America flared after the envoys demanded the release of Osman Kavala.
The row alarmed Turkish administration officials who’ve scrambled to convince Erdogan to back down, according to officials with direct knowledge of the matter. Senior advisers briefed the presidency earlier Monday on the possible economic fallout of a new diplomatic spat, recommending that the government not take any steps that would effectively force the envoys to leave, the officials said.
Lira Rally
The lira, which reached record lows against the dollar earlier on Monday, erased all losses on signs that the crisis was abating. It traded 0.2% stronger at 9.5869 per dollar at 7:53 p.m. in Istanbul.
The Borsa Istanbul Banks Index also erased earlier declines of as much as 1.2% to close the day 0.2% higher. The yield on 10-year government bonds trimmed its advance to two basis points.
“President Erdogan must be fully aware that expelling 10 ambassadors would likely have serious negative consequences,” Piotr Matys, a senior currency analyst at InTouch Capital in London, said before the series of steps unfolded Monday.
On Saturday, Erdogan said the joint statement by the ambassadors from the U.S., Germany, Denmark, Finland, France, the Netherlands, Sweden, Canada, Norway and New Zealand on Kavala was direct meddling in national affairs and the judiciary.
“I gave the necessary orders and told our Foreign Ministry to quickly take care of declaring these 10 ambassadors personae non gratae,” he said in a televised speech over the weekend.
The latest spat put Erdogan in an awkward position just days before a Group of 20 nations summit takes place in Rome, where the Turkish president is hoping to meet with U.S. President Joe Biden. No meeting has been confirmed yet.
Erdogan wants to persuade Biden to sell Turkey dozens of American warplanes. The U.S. has resisted major arms deals with Ankara since its controversial purchase of Russian air defenses.
State Department Ned Price suggested that the U.S. wasn’t backing away from the original statement that angered Erdogan. He said the Oct. 18 statement was “consistent with the Vienna Convention.”
“We’ve taken note of President Erdogan’s most recent remarks,” Price told reporters on Monday. “We will continue to promote the rule of law, and respect for human rights globally. The Biden administration seeks cooperation with Turkey on common priorities and, as with any NATO ally, we will continue to engage in dialog to address any disagreements.”
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